Corporations Cannot Be Shareholders in an S Corporation

question 49

True/False

Corporations cannot be shareholders in an S corporation.

---

Definitions:

Rate of Return

The profit or deficit experienced on an investment during a particular timeframe, represented as a proportion of the investment's initial expense.

Templeton Growth Fund

A mutual fund that aims for long-term capital growth by investing primarily in the equity of companies around the world.

Invested

Money that is allocated for a particular purpose, such as buying stocks or bonds, in the hope of generating a financial return.

Strip Bond

A type of bond where the principal and regular coupon payments have been separated and are sold individually.